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Savills sees 9% fall in H1 profit as economic uncertainty weighs

By BFN News | 07:17 AM | Thursday 08 August, 2019


Property company Savills posted a 9% drop in pre-tax underlying profit as political and economic uncertainty, especially in the UK and Hong Kong, weighed on investor sentiment and reduced real estate activity volumes. Nonetheless, the company said it continued to anticipate that its full-year performance would be in line with expectations. The company said reported pre-tax underlying profit fell £4m to £38.4m in the six months to 30 June, with £1.6m of this relating to the implementation of IFRS 16. However, group revenue climbed 16% to £847m amid 'significant growth' from its less transactional businesses, offsetting reduced activity in its UK and Hong Kong transactional markets and a drop in UK residential revenue. It increased its interim dividend 3% compared with the first half of 2018, to 4.95p per share. 'Continued investor demand, restricted supply and expectations of continued low interest rates suggest that, if political clarity emerges, the medium and long-term dynamics of the real estate markets in which we operate remain positive,' said group chief executive Mark Ridley. Story provided by StockMarketWire.com

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